Significant Insurance Premium Increase

[nlee]

Had my insurance renewal quote this weekend for the RAV. Last year it cost £386, the renewal is £517, an increase of 34%. Nothing has changed in personal circumstances, other than an extra year of no claims, so I wonder if the reports of thefts has had an impact.

I've checked on comparison sites and this is still a very competitive price.

Anyone else seen a similar jump in price?

[flash22]

It's the theft rate, more than likely been bumped up a few groups

[Hayzee]

Yes Nigel....mine just went from £330 to £460 🙁

[TonyHSD]

These amounts are still very good in comparison with some other folks insurance premiums. 👍👌

[ColinB]

My insurance went from £300 in December '21 to £350, both with M&S at a competitive quote 🙄

[Cyker]

That's nothing - My Mk4's insurance quotes went from ~£500 to ~£800!!  

It's mostly because of that stupid rule change that just came in about insurers not being allowed to give preferential rates for new customers, so like the last rule that said they weren't allowed to give cheaper quotes to women it's just given them an excuse to jack prices up across the board.

The worst thing is the Financial Conduct Authority, who actioned both of these things, have failed to learn or understand the consequences of their actions and somhow seem to genuinely think they are saving us money!! Please FCA, stop 'helping' us - If you keep 'helping' us like this nobody will be able to afford anything!!  

 

[Mojo1010]

Well try £700 for a 2016 Yaris, not young driver either, with over 10+ no claims. Living in the capital of England is not so good for a lot of things. Last policy was 630, insurer bumped it up to about 650, but because used car prices had increased, I got them to increase the market rate, bang 700. So am moving out of the capital city asap. 

[ashmj]

Swap and change every year and do it via cashback sites, don't just accept the renewal.

Just last week I insured a classic car, a Ford Escort RS for £87.30, insured today a runaround Peugeot 206cc that we, I mean I, use now and again for £100.88 which "should get £40 cashback, we'll see.

My Ford Focus is due in June, last year was £153.60.

I'll be taking care of the Yaris insurance this year, my wife is very much the "that's OK" type or is it "can't be bothered" type.

[Cyker]

If I wasn't tied here for work I'd be out of London in a flash, and taking all my taxes with me and KHAAAAAAN! can stick his ULEZ where the sun don't shine.

All this place does is take and take and gives nothing back; I still remember how nice this place was when we moved here, just more vibrant, stuff actually got repaired, you could park almost anywhere and they weren't trying to gouge you for everything should be paid for by your council tax!!

 

[FROSTYBALLS]

1 hour ago, Cyker said:

It's mostly because of that stupid rule change that just came in about insurers not being allowed to give preferential rates for new customers

But more often than not, the ''preferential rates' for new customers were at the expense of those customers who renewed. So why should existing customers subsidise those who surf for cheap quotes. 

[Hayzee]

12 hours ago, Hayzee said:

Yes Nigel....mine just went from £330 to £460 🙁

I read that male drivers age 71+ are seeing the biggest 2023 increases so far this year

[YarisHybrid2016]

1 hour ago, FROSTYBALLS said:

But more often than not, the ''preferential rates' for new customers were at the expense of those customers who renewed. So why should existing customers subsidise those who surf for cheap quotes. 

True, but now everyone gets to pay silly rates. I wonder what mine will be this year? Paid 320 last time.

[ernieb]

When I bought my car in May '21 I took a 3 year fixed price deal with SAGA so I know what this years premium will be but who knows what it will be in '24?

[Saxacat]

Live in a rural town in the North east of England, car garaged overnight, single driver (me, OAP), full NCB, and its increased by 25% this year. I put it down to the fact I'd claimed for a new windscreen (even though I have NCB protection).

[Yugguy1970]

37 minutes ago, Saxacat said:

Live in a rural town in the North east of England

I'm from the North meself.

[Cyker]

9 hours ago, FROSTYBALLS said:

But more often than not, the ''preferential rates' for new customers were at the expense of those customers who renewed. So why should existing customers subsidise those who surf for cheap quotes. 

That was the claim and justification of the new rule, but I haven't seen any real world evidence of that, especially now - Now existing and new customers are both being charged high rates; I don't know a single person whose insurance renewal has gone down as a result of this change, even ones who do tend to stick with the same insurer.

Previously, you had the option of 'voting with your wallet' - If an existing customer wasn't happy with their renewal, then change insurers - Every driver who isn't e.g. funded by the bank of mum and dad learns to do this very quickly. Even I do this and I am quite lazy - If they could get within say £50 of my cheapest quote I'd stick, but £100-£200 hike, they can smeg off.

But that £100-200 hike is now what I'm seeing in new quotes AND renewal quotes across the board. If what they say was true, the renewal quote should be similar or lower to the original quote, yet nobody I know has experienced this, and I bet if you paid that £200 hike it'd still go up again next year, which is why I'm calling BS on it.

It's just the same as the male/female difference change - Some men also approved of that rule change, as they thought why should they subsidise cheaper womens premiums, thinking theirs would go down. Not only did theirs not go down, it went up, and womens insurance instead went up to match. This is just the same - there will be no saving as a result of that rule, everybody looses except for the insurance companies.

 

[Mojo1010]

Expecting another increase when renewal comes in the summer for me, and I do obtain quotes from other company. We do have higher inflation atm, that my guess is the main reason. 

[Roy124]

In May last year I switched, used a comparator site and got Top Cash bank.  I didn't realise but I had chosen a broker rather than an insurer.  My policy was with LV but significantly less expensive than LV. 

With TCB I was paying £200 less than my original requote.  When I swapped to the Yaris in September I expected a hefty increase.  I was surprised, there was no premium change, just a £30 Admin fee. 

As I was insured through a broker I thought that reasonable. 

PS, that broker premium was 40% less and I didn't have a full NCB. 

[nlee]

1 hour ago, Mojo1010 said:

Expecting another increase when renewal comes in the summer for me, and I do obtain quotes from other company. We do have higher inflation atm, that my guess is the main reason. 

Inflation is high and the average for the rolling 12 months is around 9% at the moment. I'd expect a couple of percent reduction for an additional years no claims but not much when up around the 10 year mark, possibly a small reduction in market value being a year older by hardly significant. But a 34% increase must relate to some other factors.

[Rigsby]

Just renewed my policy yesterday, Fully comprehensive, protected NCD, breakdown cover via the AA etc, was £296 last year paid £311 this year (£331 Less £20 discount for renewing online)

The actual Fully Comprehensive insurance was £244.59.

I used a comparison site just to check how competitive it was and some of the quotes were more than 10 times what I am currently paying.

My wife’s renewal came through with a near 30% increase, same car, nothing changed from previous year, rang them and said I would give them one chance  to review the premium otherwise I would look elsewhere, agreed on a 7% increase.

Well worth picking the phone up or emailing them.

[FROSTYBALLS]

3 hours ago, Cyker said:

Previously, you had the option of 'voting with your wallet' - If an existing customer wasn't happy with their renewal, then change insurers

Obviously that option still exists, so no different to before January 2022.

[Roy124]

While you can still vote with your wallet it is a strange business case where your (the company) attractive premium this year rises to an unattractive one next year. 

It is surely more efficient, and less costly, retaining an existing customer rather than processing new applications? 

I have been with the same home and buildings insurance for a good many years.  Each year they remind me of this suggests I might get cheaper elsewhere.  I do check but we are talking a difference of only a few pounds and not worth my time checking other insurance fine print. 

Car insurance should be more straight forward with fewer variables yet retention does not seem a priority. 

I guess they rely on customer inertia rather than a competitive price for retention. 

[Mojo1010]

They get more cash this way, some forget/dont know they have it on auto renewal, some can't be bother to search elsewhere. 

When this auto renewal came in, I told them to take it off. Then last year after getting the documentation, auto renewal is on again, shady tactic. Have renewal date on phone calendar as well remember roughly when it is helps to avoid sometimes a big increase. 

 

[Yugguy1970]

Moved from Ford to Admiral this year as Admiral were cheaper.  Bizarrely though, they are both underwritten by LV.  After I'd signed up with Admiral they said "actually we are both LV" and they put me through direct to Ford to cancel the old policy.

[Roy124]

Spooky, just got an email from LV offering me a 10% discount on home and car insurance of they cover both risks.